For most first-time buyers, the dream starts the same way. It starts with late-night scrolling through property portals, then a Pinterest board or two of your dream kitchen and patio, and a firm belief that if a property is listed at R1.5 million, that’s probably what it will cost.
Unfortunately, it rarely is.
According to the Crown Collective Team in Tyson Properties Southern Suburbs, agents Sean White, Jason Thomas, Declin Lesch and Anya B, the biggest mistakes buyers make often happen long before they ever step foot inside a show house.
“The first thing buyers often don’t look at is what they can really afford,” says Sean White.
This may sound obvious, but affordability and budget are not always the same thing. Many first-time buyers begin their search based on where they want to live rather than what their finances can realistically support, which often leads to weeks spent chasing properties that were never within reach. Before viewing homes, it is worth speaking to a bond originator, such as Capital Bonds, to gain a clear understanding of your purchasing power and avoid disappointment later in the process.
Declin Lesch says one of the biggest issues arises when buyers start looking before securing pre-approval. They find the perfect property, only to discover later that getting bond approval is far more difficult than expected.
The property itself is only one piece of the extremely complicated jigsaw puzzle that is real-estate. Rates, levies, transfer costs, moving expenses and furniture all have a way of entering the conversation after the offer has been signed.
“People don’t look at the overall picture,” says Jason Thomas. “They think if a property costs R1.5 million, that’s it.”
In reality, that R1.5 million purchase comes with a long list of additional costs that can quickly reshape a buyer’s budget. Furnishing a first home alone can add tens of thousands of rand to the equation.
The team also notes that many buyers overlook the value of working with a bond originator, who can often help secure better financing options and simplify the application process.
Of course, affordability leads to one of the more uncomfortable conversations real estate agents regularly have with first-time buyers.
“A lot of first-time buyers look at buying in trending areas without considering what they can actually afford,” says Jason.
The Atlantic Seaboard. Rondebosch. Upper Kenilworth. The neighbourhoods everyone wants. The problem is that the numbers don’t always cooperate.
That’s when agents often have to introduce an idea that many buyers aren’t initially excited to hear.
“The hard conversation to have is to say, ‘Look, you’re not buying your forever home (yet),'” says Jason.
It’s advice that can be difficult to accept, particularly when emotions are involved. Declin explains that some buyers become discouraged during these discussions, while others initially suspect the agent is steering them away from what they really want.
Yet given enough time, many buyers arrive at the same conclusion themselves. What initially feels like disappointment often becomes a new perspective. They begin to recognise that the advice isn’t about lowering expectations – it’s about creating a realistic pathway toward the lifestyle they ultimately want.
In most cases, one of two things happens. Buyers either decide to increase their budget, or they adjust their expectations and focus on properties that make stronger financial sense.
That shift in thinking is often where the smartest first-time purchases happen.
In the Southern Suburbs, buyers are increasingly looking at older apartments and homes with renovation potential rather than stretching themselves financially for a brand-new development.
“A big amount of apartments in the Southern Suburbs buyers end up renovating to their liking,” says Anya.
Older properties often come with something many modern developments cannot offer – more space. And isn’t that what everyone wants? Larger rooms, solid construction, established neighbourhoods and, in many cases, lower levies.
The trade-off is that they may need updating.
For buyers planning to live in the property long term, that compromise can be worthwhile. Renovating over time allows owners to build equity while creating a home that suits their lifestyle.
New developments tell a slightly different story.
“New and small apartments work well when you’re only buying as an investment and you don’t plan on living there,” says Jason.
That reflects a broader trend within the market. Investors often purchase units off-plan or before construction is completed. Depending on the development structure, this can provide cost advantages and a lower entry point. The appeal lies less in the size of the apartment and more in the investment fundamentals.
The reality, however, is that buying an investment property doesn’t automatically mean the rental income will cover the bond. In many Cape Town suburbs, property values have risen so significantly that rental income alone may not fully offset monthly ownership costs, particularly once rates, levies and maintenance are factored in. Investors are often relying on long-term capital growth as much as monthly rental returns. (Virtual Realty Property Solutions)
That changing equation is one reason why many younger Capetonians continue to rent for longer.
“We’ve recently been seeing a big problem where your rental price and your bond are almost matching, whereas before, it was flipped the other way,” says Declin.
It doesn’t mean buying is a bad decision. It simply means buyers need to understand exactly what they are buying for. A family looking for a home may benefit from purchasing an older property in an established suburb and adding value through renovations. An investor focused on rental demand and future growth may find a modern apartment development more attractive.
The strategy should always come before the property. And getting a real estate agent to help you navigate, is the missing piece of that jigsaw puzzle! The one that will make it all come together.
Before starting the search, the team recommends three things: get pre-approved, budget for the hidden costs and build a relationship with a local area specialist.
The last point matters more than many buyers realise. Not every property reaches the major property portals. Some of the best opportunities are shared through agent networks before they ever hit the market.
Buying your first property has never been cheap or entirely stress-free. But perhaps that’s the point. The most successful first-time buyers aren’t necessarily the ones with the biggest budgets. They’re the ones willing to think beyond the dream kitchen, understand the numbers and make decisions that their future selves will thank them for.
“You always have to think about the future when you’re buying,” says Sean. “What does the long term look like?”
This article was proudly sponsored by Abrahams & Gross Attorneys.
